UP becomes first state to offer subsidy for Upstream Infrastructure in EV charging stations

Becoming the first state in India, the Uttar Pradesh government on Monday announced that the state’s EV subsidy will include the charging stations’ upstream installation costs. The decision came under the direction of Chief Secretary Manoj Kumar Singh, who chaired the high-level empowered electric vehicle committee (HLEEVC).

The costs of establishing the supporting infrastructure required to supply energy to the charging stations themselves are referred to as "upstream installation costs" for the EV charging infrastructure. These costs, which can include expenditures for grid upgrades, transformers, cabling, and other electrical components, are separate from the direct cost of the charging equipment (chargers, connectors, etc.).

The state government claims that upstream infrastructure expenses would now be covered during the policy period for the first time in India by qualifying fixed capital investment, which is necessary to get a capital subsidy of up to ₹10 lakh per unit.

The step is in the direction of improving public charging stations' (PCS) feasibility and scalability. The state's key body for carrying out this policy is Invest UP. The inability of charge point operators to meet the minimum fixed capital investment threshold of ₹25 lakh because upstream infrastructure costs are excluded from eligible investments is anticipated to be resolved by the policy amendment under the Uttar Pradesh Electric Vehicle Manufacturing and Mobility Policy–2022.

Charge point operators that establish charging stations in the state can take advantage of the policy's incentives. A one-time capital subsidy of 20% on fixed capital investment, which includes building, civil works, chargers, upstream infrastructure, battery equipment, utilities, tools, and other related assets (but not land costs), is available to charging stations. The maximum amount of the subsidy is ₹10 lakh per unit.